Future Value Calculator
Calculate the future value of a lump sum, regular contributions, or both.
Find what your savings will grow to with compound interest over time.
What Is Future Value?
Future Value (FV) is the value of a current asset at a specified date in the future, assuming a certain rate of growth. It is a core concept in the time value of money — the idea that a dollar today is worth more than a dollar tomorrow, because today’s dollar can be invested and earn returns.
Lump Sum Future Value
If you invest a single amount today (a lump sum):
FV = PV × (1 + r/n)^(n×t)
Where:
- PV = Present value (lump sum today)
- r = Annual interest rate (as a decimal)
- n = Compounding periods per year (12 for monthly, 4 for quarterly, 1 for annually)
- t = Time in years
Regular Contribution Future Value (Annuity)
If you make regular contributions (like a monthly savings deposit):
FV = PMT × [(1 + r/n)^(n×t) − 1] / (r/n)
Where PMT is the contribution per period.
Compounding Frequency Effect
More frequent compounding means more interest on interest:
| $10,000 at 6% for 10 years | Future Value |
|---|---|
| Annually | $17,908 |
| Quarterly | $18,061 |
| Monthly | $18,194 |
| Daily | $18,221 |
The difference between monthly and daily compounding is small; the difference between annually and monthly is more meaningful over long periods.
The Power of Starting Early
Starting 10 years earlier can more than double your final wealth. Consider:
- Investor A invests $500/month at 8% for 30 years → $679,700
- Investor B invests $500/month at 8% for 20 years → $294,510
Investor A ends up with 2.3× more by starting a decade earlier.
Real vs. Nominal Returns
These calculations show nominal (before-inflation) returns. To find the real return, subtract the expected inflation rate from your annual rate. For example, 7% nominal minus 3% inflation = 4% real annual return.
Milestone Checkpoints
This calculator shows your balance at 25%, 50%, 75%, and 100% of your time horizon — so you can see the accelerating power of compounding in the later years.